Paying taxes is the responsibility of every businessman and is crucial to keeping the business compliant with tax rules and regulations. The best way to navigate tax complexities is to reach out to tax consultants and consultancy firms like Al Riyady.
Choosing the right tax consultancy firm can significantly add value to your business. You can trust Al Riyady tax consultants without any second thought, as we have successfully fulfilled our business clients’ needs. We offer comprehensive services in tax preparation, analysis, tax payments, and tax returns, regardless of business type or activities.
How Do We Add Value to the Company?
Choosing a tax consultancy in UAE is a preferable alternative because it makes a company or individual knowledgeable of the country’s tax rules. Tax accountants assist in the preparation of tax accounting for tax purposes.
We provide value to your company by:
- Evaluating the advantages and disadvantages of your company structure
- Assisting you in selecting the appropriate VAT schemes – voluntary or mandatory
- Increasing profitability and lowering expenses through efficient techniques
- Reducing your tax liability by staying up to date on the latest tax policies
- Appropriate Bookkeeping education that saves you time and money
- Developing metrics-based performance evaluations to assess market trendsT
Different Types of Taxes in UAE
Several tax forms have been introduced by the UAE that should be paid for smooth business flow. Different businesses are liable to different types of taxes. It is important to know which category your business falls in. Let’s take a look at the major types of taxes businesses have to pay
Excise Tax
Excise tax is charged on items that are not considered essential, though people still buy and use them due to personal preferences and taste. These items include tobacco, cigarettes, soft drinks, alcohol and fuel. These products are more expensive because the tax is already included in the price, so when someone buys them, they also pay the excise tax. The purpose of the excise tax is to minimize the consumption and generate revenue for the government.
The following products are required to be registered as excise goods.
- Carbonated soft drinks
- Advanced smoking devices
- Tobacco and any product made of tobacco
- Sugary drinks
- Any drink that contains mental or physically stimulating substances, commonly known as energy drinks
Value Added Tax (VAT)
You need to pay the Value Added Tax (VAT) for selling goods and services at each point. Al Riyady tax consultancy firm can also help you understand whether your business activities need to be registered for VAT. There are three categories of supplies according to VAT
Exempt Supplies
Some products fall in the category of exempt supplies that do not have VAT. The following services are free from VAT
- Financial services that include banking, loans, and insurance
- Buying and renting a building or house
- Plot without any building
- Transport services within the county also have no VAT
Taxable Supplies
Services and goods on which VAT is applied are taxable supplies. These include
- Electronics
- Groceries
- Clothes
- Buildings being used for business purposes
- Restaurants
- Repairing equipment
Zero VAT
Some services with no VAT are known as zero-rated supplies. For the following services, you do not have to pay any extra amount
- Medicine
- Education
- Healthcare services
- International shipping
- Business of natural resources
Importance of Tax Consultation Services
It is essential to understand that business is not all about enjoying the perks; it comes with significant responsibilities. Fulfilling these responsibilities not only helps in business regulation but also protects your business and sets it up for growth. One such responsibility that ensures compliance with regulation is tax payment. This is where tax consultation services play their part.
Every business needs to hire a tax consultant because submitting accurate taxes is a critical responsibility. To avoid errors and complications, it is better to reach out to an Al Riyady tax consultant in Dubai for the best services.
How Al Riyady Tax Consultants Can Improve Your Business?
Businesses need to have a tax strategy that aligns with their objectives. Each business is unique and has different needs and goals. Our team can provide customized solutions that will improve your business’s overall turnout and success.
Our consultants can also improve business through;
- Evaluation of profit and loss margin of business
- Ensuring that you choose the most appropriate VAT schemes
- Maximizing the profitability and minimizing the loss and cost through a strategic approach
- Keeping track of tax up to date
- Following the latest tax policies to avoid penalties
- Providing training to manage financial records
- Evaluation of reports by using fundamental matrices and market trends
Benefits Of Tax Consultancy in Dubai
Al Riyady tax consulting services in UAE play a key role in ensuring successful and smooth business operations, with our tax advisors being experts in tax management.
Here are a number of benefits that you can get;
- Tax advisors not only help you with tax payments but also offer guidance for a smooth business flow.
- Along with tax handling, they also go through other parts of the company finances to ensure everything is good.
- Tax computation can be time-consuming and complicated without a tax consultant UAE. However, using tax consulting services in UAE can make it quicker and easier.
- Tax advisors also offer additional services like license renewal and auditing for your business.
- Tax advisors keep business papers organized, so you do not have to worry about it.
- They guide you on tax computation and share strategies to lower tax amounts.
- Most importantly, tax consulting services in UAE give you peace of mind by managing all the records.
Points To Keep in Mind
Each business must pay tax regularly as it is a legal obligation.
- To avoid legal issues, it is advised to understand the specific tax rules and regulations that apply to your business type.
- Tax payment after the due date can result in fines and penalties.
- Tax rules keep changing, so it is important to stay informed.
- Keep your invoices, bills, and financial records maintained and organized as they help you file taxes.
- Estimating tax before submission can give you an idea of the required budget.
- To avoid paying more than necessary, learn tax computation.
Taxes on Tourists
Restaurants, hotels, hotel apartments, resorts, and other establishments in the UAE may levy one or more of the following fees.
Below are the taxes:
- There is a 10% tax on the room rate.
- There is a 10% service charge
- Municipal fees of ten percent
- A 6- to 10-percentage-point city tax
- A 6% tourism charge
- In Dubai, hotels charge a ‘Tourism Dirham Feel’ per room per night of occupancy (for example, if you stay for two nights). a maximum of 30 nights) with prices ranging from AED 7 to AED 20 depending on the hotel. The hotel’s category/grade.
- In May 2016, it was reported that hotels in Abu Dhabi would implement a new rate structure. Additional charges of 4% of the hotel bill and AED 15 per night per room.
- Hotels in Ras Al Khaimah levy a tourism fee of AED 15 per room per night.
Frequently Asked Questions
WHY IS IT ADVISED TO HIRE A TAX CONSULTANT IN DUBAI?
Paying taxes is a time-consuming process, and the chances of errors are high. That’s why it is advised to hire a tax consultant so you do not have to face any issues and complications in tax management and payment.
HOW MUCH DOES A TAX CONSULTANCY IN UAE CHARGE FOR CONSULTATION SERVICES?
The tax consultation fee is not fixed; it depends on your company’s number of transactions. The greater the number of transactions, the higher the consultation fee. In UAE, some consultancy firms offer one-hour free consultations to entrepreneurs.
IS IT MANDATORY TO PAY VAT?
Yes, paying VAT is crucial for smooth business operations and compliance with tax rules and regulations. Remember that some goods and services, such as education and health care services, do not have VAT. For better understanding and guidance, you can reach out to Al Riyady.
WHAT ARE THE CONSEQUENCES OF NOT PAYING TAXES?
It is essential to register taxes, as not paying taxes to authorities can lead to
- Fine and penalties
- Delay in renewal of license
- Challenges in business activities
- Difficulty in opening a bank account
DO I NEED AN OFFICE TO REGISTER EXCISE TAX?
No, office space is not a requirement of the registration process. You can comply with the UAE’s tax regulations without a physical appearance.
HOW CAN AL RIYADY TAX CONSULTANTS HELP IN TAX SERVICES?
Al Riyady tax consultants help you in several ways. For example, tax advisors not only help you with tax payments but also offer guidance for smooth business flow. In addition to tax handling, they ensure everything is up to par and according to the UAE’s tax rules and regulations.
DOES EVERYONE NEED TO PAY CORPORATE TAX?
No, not every business needs to pay corporate tax, as it depends on various factors, including business type, location, and profit. Keep in mind that businesses operating outside the UAE do not need to pay tax. Also, the Standard corporate tax is 9% and is only imposed on businesses whose revenue is more than AED 375000.
WHAT IS THE PURPOSE OF PAYING TAXES?
The purpose of paying corporate tax is to contribute to the economy of the UAE, allowing the government to provide better facilities and improve the quality of life through advanced infrastructure, education, technology, and the healthcare system.
